Clearing the confusion over honouring cheques with corrections, the Reserve Bank of India  said this will be applicable only for cheques cleared under the image-based cheque truncation system (CTS). According to a RBI notification, this has been introduced to curtail cheque frauds on account of alterations in cheques and protect customers as well as banks.

“Collecting banks should ensure, that such cheques are not accepted for presentment in CTS,” RBI said.

Currently, the cheque truncation project is being run only in the Delhi.

This is not applicable to cheques cleared under other clearing arrangements such as MICR clearing, non-MICR clearing, over the counter collection (for cash payment) or direct collection of cheques outside the Clearing House arrangement .

The RBI had earlier stated that, “No changes or corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.”

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0 responses to “Will cheques with alteration or corrections be dishonoured? RBI clarifies”

  1. Majaz M. S. says:

    I submitted the Cheque on 07/04/2011, i.e, 7-days before the deadline date, i.e., 15/4/2011, I was informed by the School authorities on 27/04/2011 about the cheque is not honoured. They asked me to submit the Fee Rs.500/- for Late Fees & Rs.500/- for dishonoured cheque. Is mere correction in the Date on the cheque is liable for dishonouring? Please let me know about the RBI ruling in this connection?

  2. IK ARORA says:

    RBI has taken right decision. This decision is only applicable for chques cleared under CTS. RBI should take more initiatives for other clearing arrangements under MICR/non MICR and at cash collection counters to reduce fraud.

  3. Navanit Sharma says:

    The initiative of RBI is positively welcome and this will help reduced the fraudulent practice.

    RBI can not controlled 100 % of the such practice. So, the drawer should be careful before issuing chques to any body viz; drawer should not issue the cheques as blank or only filled chques should be signed.

  4. Vignesh says:

    so the cheques wont be dishonoured in cities other than Delhi. Am I right?


    minor correction in cheques will always be there. alteration / corrections liable to be dishonored , hence it is better to issue fresh cheque.
    R.B.I has taken the right decision.and also the clarification.

  6. bhaskar nagawade says:

    from where I can see the RBI’s earlier circular as well clarification on above subject.


    sent this at my e-mail address

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